ProLogis releases report on transport collaboration in Europe

BUILDING greater co-operation among rivals and non-rivals in the European supply chain is a promising avenue of advance, says a report from Denver-based Prologis, the global provider of distribution facilities.

The "Transport Collaboration in Europe" report notes that transport costs account for 30 per cent of total supply chain costs and to reduce them, companies have recently found ways of collaboration with both non-competitors and competitors.

"What we are interested in exploring is a new twist or variation on transport collaboration, one involving business peers," said Lisa Graham, vice-president of European research for the ProLogis Research Group.

"Aware of the potential benefits, a few companies in Europe have reached out to competitors to collaborate on and improve the efficiency of their distribution networks," she said.

"Numerous barriers to collaboration must still be overcome, including mistrust, but the potential cost savings and other benefits are so great that third-party organisations, shippers/hauliers and logistics parties are induced to continue to find opportunities for forging successful transport collaborations," the report said.